This is a good point, the number you are providing looks cherry-picked, but the point is valid enough.Are you sure your market timing is going to work out better than staying put? BND is up 12.5% since last October.When the bond market meltdown happened a couple years ago I swapped out our BND holdings in multiple accounts and replaced them with ladders of 12 month t-bills with automatic reinvestment. I keep an eye on the t-bill rates and bond market returns and I know one day we will go back to bonds but for now I'm content.
If you compare T-Bill rates and expect 4-5% over the next year, that sounds nice.
Until you live that year.
And maybe you see BND return 9.1% for that year. https://ycharts.com/companies/BND
You have to evaluate BND and similar funds and ETFs on total return, including the price going up as interest rates go down.
Statistics: Posted by ladders11 — Fri Aug 23, 2024 2:26 pm — Replies 53 — Views 5092